Intel Sold Its NAND Memory Business for About $9 Billion. Micron Is Now Worth More Than Twice What Intel Is.
The chipmaker exited NAND memory in one of the semiconductor industry's biggest asset sales. Nearly six years later, the market has put a price on what it walked away from.
Overview
In October 2020, Intel (NASDAQ:INTC) agreed to sell its NAND memory and storage business to SK Hynix (NASDAQ:SKHY) for $9 billion. The package included Intel's solid-state drive business, its NAND components and wafers, and its factory in Dalian, China.
One thing I want to be clear about from the start: the buyer was SK Hynix, not Micron (NASDAQ:MU). Micron's role here is as a measuring stick -- the biggest American memory company, and the closest thing to a pure-play gauge of what the memory business became after Intel left it.
Details
That measuring stick says a lot. Micron's market value stands near $1.05 trillion as of this writing. Intel's is about $464 billion. So was the exit a mistake?
Source
Originally published at www.fool.com.